If you are currently on the lookout for gold mining stocks then it could be a good move to take a look at the Labrador Gold Corp (OTCMKTS:NKOSF) stock. This past Friday the stock had actually come into focus among investors and ended up clocking gains of as much as 29%.
That being said, it is also necessary for investors to keep in mind that there was no news regarding the company on Friday that might have led to such a rally. That said, back on June 17 Labrador Gold had announced that it was in the process of expanding its drill program to 50000 metres from 20000 metres.
In addition to that, the company also stated that the number of drill rigs is also going to be boosted to four. Both these announcements are significant and might have been a factor behind the rally in the stock on Friday.
The company made the decision to expand is drill program after having completed a review of a range of targets in quartz vein corridor that stretches 7.5 kilometres. At this point, Labrador Gold boasts of working capital to the tune of $36 million and hence, it has the financial wherewithal to embark on this expansion.
Market Reaction:
On Friday, NKOSF stock increased by 29% to $1.38 with more than 511K shares, compared to its average volume of 423.9K shares. The stock has moved within a range of $1.0900 – 1.3800 after opening the trade at $1.14. Over the past 52-week, the stock has been trading within a range of $0.2390 – 1.5030.
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